Malaysia Jobless Rate Lowest in Over Decade

Malaysia’s unemployment rate stood at 2.9% in February 2026, remaining unchanged for the fourth consecutive month and holding at its lowest level since November 2014. The number of unemployed persons declined by 0.6% from the previous month to 506.8 thousand. Meanwhile, employment rose by 0.1% to 16.79 million, keeping the employment-to-population ratio at 68.8%. Job growth was mainly driven by the services sector, particularly wholesale and retail trade, followed by accommodation and food & beverage services and information and communication activities. By employment status, employees accounted for 75.0% of total employment, increasing slightly to 12.59 million, while own-account workers also rose to 3.13 million. The labor force expanded by 0.1% to 17.30 million, with the labor force participation rate steady at 70.9%. Meanwhile, the number of persons outside the labor force edged down to 7.10 million, mainly due to housework or family responsibilities and schooling or training.

Malaysia’s unemployment rate fell to 2.9% in January 2026 from 3.1% in the same month last year, reaching its lowest level since November 2014. The number of unemployed persons dropped by 4.5% from a year ago to 509.6 thousand, and those outside the labor force declined by 0.7% to 7.11 million, mainly due to housework/family responsibilities and schooling/training. Additionally, the youth unemployment rate, aged between 15 to 24 years old, edged down to 10.2% from 10.3%. Meanwhile, employment rose by 0.5% to 16.77 million, lifting the employment rate to 68.8% from 68.5% in January 2025. The number of employed persons in the services sector continued to grow steadily, particularly in wholesale & retail trade, followed by accommodation and food & beverage service activities, and transportation and storage activities. The labor force participation rate also increased to a new record high of 70.9%, from 70.6% a year earlier.

Malaysia’s unemployment rate declined to 2.9% in December 2025 from 3.1% a year earlier, reaching its lowest level since November 2014. The number of unemployed persons dropped 3.9% yoy to a six-year low of 517.7 thousand, while employment rose 3.0% to a fresh record peak of 17.13 million, lifting the employment rate to 68.9% from 68.4%. The number of employed persons in the services sector continued to grow steadily, particularly in wholesale & retail trade, followed by accommodation and food & beverage service activities, and information & communication activities. Meanwhile, the labor force participation rate climbed to 70.9%, maintaining a record high, from 70.6% in the same month a year earlier. The youth unemployment fell to 10.1% from 10.4%, staying at the lowest level since January 2020. The country’s labour market in the upcoming months is projected to transition into 2026 with strengthened foundations driven by a combination of fiscal, tourism, and employment initiatives.